Apple is close to finalizing a deal to acquire the team and technology behind Prompt AI, a startup known for its advanced computer vision capabilities.
Quick Summary – TLDR:
- Apple is reportedly in late-stage talks to acquire Prompt AI’s tech and key staff.
- The startup created Seemour, an AI-powered home security camera assistant.
- The deal follows a growing trend of acquihires in the AI industry to avoid regulatory hurdles.
- Prompt AI’s business model struggled, leading to its app shutdown and acquisition talks.
What Happened?
At an all-hands meeting, Prompt AI’s leadership told employees about a pending deal with Apple. Some team members are expected to join the tech giant, while others may receive reduced salaries and be encouraged to apply for open positions at Apple. The company will retire its product, Seemour, and delete user data in the process.
Apple $AAPL is in late-stage talks to acquire top talent from computer vision startup Prompt AI, as well as the company’s technology – CNBC pic.twitter.com/7rGIvotVWd
— Evan (@StockMKTNewz) October 10, 2025
Apple Acquihires Prompt AI: What’s Inside the Deal?
Apple appears ready to add Prompt AI’s talent and core technology to its growing AI arsenal. The 11-person startup, founded in 2023 by UC Berkeley PhD Tete Xiao and AI research veteran Trevor Darrell, specialized in computer vision tools that enhance smart home capabilities.
Their flagship app, Seemour, connected to home security cameras and used AI to:
- Identify people, pets, animals, or objects in real time.
- Send alerts and text-based summaries of activity.
- Respond to natural language questions about camera footage.
While the app worked well, co-founder Xiao reportedly told staff the company struggled to find a viable business model, prompting the shift toward acquisition. Seemour will be discontinued, and users will be notified that their data will be deleted and privacy protected.
Prompt AI had previously raised a $5 million seed round led by AIX and Abstract Ventures. Despite this early promise, investors have been told they “won’t be made whole”, signaling a modest financial outcome for backers.
Tech Giants Compete for AI Talent
The Prompt AI acquisition fits a broader trend in Silicon Valley: acquihires. Companies are purchasing small startups not for their products, but for their highly skilled teams and foundational AI tech, all while sidestepping antitrust regulators.
Apple’s acquisition is smaller in scale compared to:
- Meta’s $14.3 billion investment in Scale AI.
- Google’s $2.4 billion deal for Windsurf’s leadership.
- Microsoft’s $650 million licensing move with Inflection AI.
Prompt AI had attracted interest from Elon Musk’s xAI and Neuralink, according to executives, but ultimately aligned with Apple. The iPhone maker is expected to integrate Prompt’s technology into its HomeKit division, which handles its smart home ecosystem.
Apple’s Cautious AI Strategy
Apple has historically avoided large acquisitions, opting instead for small, strategic purchases like this one. Its largest-ever acquisition remains the $3 billion Beats Electronics deal in 2014.
Critics argue that Apple’s slow approach to AI has caused it to fall behind competitors. Its recent unveiling of Apple Intelligence was met with lukewarm reviews, and its stock is down 2 percent this year, trailing major tech peers.
However, Apple has seen technical success in computer vision, particularly with features in its Vision Pro headset and photo object recognition on the iPhone. By acquiring Prompt AI, Apple could be aiming to shore up its home automation offerings and regain momentum in AI innovation.
SQ Magazine Takeaway
Honestly, this is Apple doing what it does best: picking up smart people with good tech, keeping the move quiet, and baking it into something bigger. I think the Prompt AI acquihire is less about the app itself and more about bringing deep computer vision talent in-house. With AI heating up across all of Big Tech, Apple can’t afford to sit on the sidelines anymore. This might not make headlines like Meta or Google’s billion-dollar plays, but it could quietly power the next wave of smart features in Apple’s ecosystem. And I’m all for that kind of low-noise, high-impact innovation.
